United States

Solar financing, lease, and PPA

Loan-financed solar carried a $1.2/W premium over cash in 2024. Sourced facts on financing's effect on price — lease and PPA pricing is not yet sourced.

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Does how I pay for solar actually change the price?

Measurably, yes, for at least cash versus loan. LBNL's 2024 data shows a $3.5/W cash-purchase median versus $4.7/W for loan-financed systems — a $1.2/W gap driven by dealer fees rolled into the up-front price a financed customer sees. That gap has widened over time, from $0.6/W in 2017.

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What about lease or PPA pricing specifically?

Not sourced in this brief. No national dataset for lease or power purchase agreement (PPA) pricing appears in the research behind this site, so we're not going to state a figure for either. What is established is the structural difference: in a lease or PPA, a third party typically owns the system, which changes who can claim a tax benefit and how the monthly cost is structured compared to owning the system outright via cash or a loan.

Does the federal tax credit apply to a lease or PPA?

This brief doesn't have a sourced answer for systems installed after 2025, and it's flagged as the highest-value open question following the §25D repeal — the business-side credits that might apply to a third-party-owned system were out of scope for this research pass. Do not assume a lease or PPA provider passes through a tax benefit that may not exist; ask directly and get it in writing.

If I'm deciding between owning and a lease or PPA, what should I ask?

Ask who owns the equipment, who is responsible for the workmanship and product warranties (sourced separately at 1-5 years and 10-12 years respectively for owned systems), and whether the provider is claiming any tax benefit themselves as the owner rather than passing it to you. These are structural questions the sourced material supports asking, even without a national lease/PPA price figure to compare against.

Sources

3 cited

Cash vs. loan pricing gap: Lawrence Berkeley National Laboratory, U.S. Distributed Solar and Storage — 2025 Data Update, October 2025 (checked 2026-08-18).
Warranty structure for owned systems: NREL/TP-7A40-73822, December 2018 (checked 2026-08-18).
Open question on third-party-owned systems post-repeal: research-brief.md omissions list, compiled 2026-08-18 from CRS Insight IN12611 and related IRS guidance.

How it works

From “is it worth it?” to a number you can check

Start with your power bill

The kilowatt-hours you used over the last year is the number every honest quote is built from. Without it, any price is a guess.

See what the roof can actually make

Pitch, orientation and shade decide how much of that usage a system can realistically cover. This is the step door-to-door pitches skip.

Put the quotes on one basis

Cash, loan and lease are three different products. Compare system size and total price first, then compare the financing separately.

Matched with a licensed local company

The work is done by licensed local solar companies. We do not sell panels and we do not fit them.

How we work

What to expect from this site

Every figure here carries its source and the date it was checked.

Answer first, then the working

Each page opens by answering its own question in a couple of sentences, then shows the arithmetic underneath for anyone who wants to check it.

Ranges, not one confident number

Solar pricing moves with the roof, the state, the utility and the financing. A single national figure fits almost nobody, so we publish the spread our sources support.

We say when the maths does not work

A shaded roof on a low tariff can be a poor buy. That is a legitimate answer to the question and you will find it here rather than a reason to keep reading.

We are not the contractor

We do not sell panels and we do not fit them, so nothing here depends on you signing. Licensed local companies do the work.

Questions

Frequently asked

The questions homeowners actually ask before they sign anything.

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Is a loan more expensive than paying cash for solar?

Per watt, yes, based on 2024 data — a $1.2/W gap between cash and loan-financed median prices, driven by dealer fees built into the financed price.

How much does a solar lease cost?

This brief has no sourced national lease-pricing figure — we're not going to state one without a source behind it. Get a specific written quote and compare it structurally (who owns the system, what happens at the end of the term) rather than against a national average that doesn't exist here.

Can I get the federal tax credit if I lease my system?

This brief doesn't have a sourced answer for what, if anything, applies to third-party-owned systems after the 2025 repeal — it's flagged as an open question. Ask the leasing company directly and get any claimed tax treatment in writing.

What's the real difference between owning and a PPA?

Ownership structure — in a PPA, a third party typically owns the equipment and sells you the power it produces, versus owning the system yourself via cash or a loan. That changes who holds the warranties and who could claim any tax benefit, which is why it's worth asking about directly rather than assuming.

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